Deutsche Bank is slashing 15,000 jobs and shedding assets as new Chief Executive John Cryan starts to implement a deep overhaul at Germany’s biggest bank. As Ciara Lee reports it’s not the only bank struggling to restructure.
15,000 jobs go in Deutsche Bank revamp
He’s the new CEO tasked with improving business at Germany’s biggest bank.
And so it fell to Deutsche Bank’s John Cryan to deliver the news of job cuts.
SOUNDBITE) (German) DEUTSCHE BANK CO-CEO, JOHN CRYAN , SAYING:
“I’m very much aware of the fact that these are 9,000 lives, 9,000 people and their families. We will have to close down some of our branches in Germany and abroad. We will completely exit some countries.”
6000 contractor positions will also be slashed and 4 billion euros worth assets disposed of.
A further 20,000 jobs may also go over the next two years – and Cryan said the bank will sacrifice its 2015 and 2016 dividends.
The group saw a record 6 billion euro pretax loss for the third quarter, sending shares down six percent.
Costly litigations from two scandals and a downturn in Asia have pushed Deutsche’s valuation below rivals.
Matthew Beesley from Henderson Global Investors.
(SOUNDBITE) (English) MATTHEW BEESLEY, PORTFOLIO MANAGER, HEAD OF GLOBAL EQUITIES HENDERSON GLOBAL INVESTORS, SAYING:
“Deutsche Bank is a very complex business with many moving parts and as an investor looking out to 2018, it’s still quite uncertain to how that near term earnings recovery projectory will look.”
Also on a cost-cutting mission – Barclays.
It’s to spend a billion pounds to shield its retail customers from riskier areas of the business.
It’s also having to set aside 290 million pounds to compensate customers mis-sold foreign exchange products.
Third quarter profits at Barclays were down 10 percent year on year.
Having a better day – Spain’s Santander – the euro zone’s biggest bank.
Its third quarter net pofit rose nearly five percent on last year.
But it too faces challenges – including currency woes and a deep recession in Brazil – where it makes a fifth of its earnings